Third Party Certification As An Emerging Form Of Regulation In The Minerals Industry

A trend towards the independent verification of sustainable development reporting and assessment using third party certification can be discerned in the global minerals industry. Various codes that provide for the third party assessment and certification of performance against a range of externally developed sustainability indicators are being adopted by minerals companies, and there is also considerable activity in the broader area of third party assurance. Using a sociological approach, this paper examines the reasons why third party certification schemes are appearing in the minerals industry to address sustainable development imperatives in preference to other forms of regulation, and considers the broader implications of this trend. Data are drawn from a series of qualitative, in-depth interviews conducted with some of the key players in the development and adoption of certification schemes in the minerals industry, with executive managers of a range of large mining corporations, with representatives of global non-governmental organizations that are active in mining issues, and with government officers responsible for the regulation of mining corporations in Australia. Factors responsible for the emergence of the new certification schemes include: increasing demands from stakeholders for greater credibility in reporting against sustainable development indicators; broader contextual factors including globalization and neoliberal policies; and issues relating to trust and risk. Using insights from our research, and the work of others in this field, we identify some of the critical features of a credible third party certification scheme, and note some of the challenges for the design and implementation of such schemes. We conclude by discussing some of the broader implications of third party certification as an emerging form of regulation in the minerals industry.